b. How NIM Sensitivity to Inflation Rate INF affect profitability ROA of domestic banks and foreign banks in Indonesia?
Which variables can explain more to profitability of each group of banks? 2.
Which of the two kinds of banks is able to better deal with the variables and perform more?
1.3. Research Objective and Utility
The objective of this research are: 1.
To analyze how bank-specific and macroeconomic determinants affect the profitability of domestic banks and foreign banks in Indonesia and to identify
the differences in the determinants of profitability between domestic and foreign banks in Indonesia for period of Q1 2010-Q4 2013.
2. To compare the performance of domestic banks and foreign banks in
Indonesia to show which bank performs better than other. The study is expected to provide information and input to several
interested parties, among others: 1.
Researchers and academics The results of this study is one of a useful reference for subsequent banking
research to increase knowledge about the problems that occurred in the banking world as well as an input for science, in particular knowledge of the
determinants of banks profitability both foreign and domestic bank. 2.
Banks Help evaluate the results of the companys performance with respect to the
aspects that affect the profitability as well as the readiness of banks in a
competitive business then to formulate policies for the future so that profitability can be maintained or even continue to increase and also can
survive and compete among their competitors as the developing globalization. 3.
Those investors and the public The results of this study are expected to be considered in decision-making
and guide investment in a company, as well as provide information about the condition of the national banking system, so that we can know the
performance of banks in Indonesia, so it can be used as a reference for making decisions.
1.4. Research Systematication
This study is divided into 5 sections with systematic writing, which is described as follows:
Chapter I Introduction
This chapter is a chapter that provides a brief overview of the content of the study, which contains the research, problem
formulation, research objective and research systematic writing. Chapter II
Literature Review This chapter is the basis of the analysis that will outline and basic
theory of the research, so in this chapter will describe theoretical basis, empirical evidence, framework of theory, hypotesis
conceptual. Chapter III
Research Methods
This chapter contains the research methodology, a section describing the research variables and operational definitions, how basic
research, methods used, sample data sources, data gathering, and data analysis method.
Chapter IV Results and Discussion This chapter is the core of this thesis, as stated in this chapter a
description of the object of research, data analysis and discussion of the results of the analysis based on the theory to answer the issues
raised. Chapter V
Conclusion Based on the explanation of the results of the data analysis in
Chapter IV above, the conclusion will be formulated which is a proof of the hypothesis that there is in Chapter II. In addition, also be
expressed limitations of the research conducted, and suggestions are expected to be useful for relevant agencies.
23
CHAPTER II LITERATURE REVIEW
